Patten OK’d for $842,060 in tax benefits for South St.

By Cathy DeDe, Chronicle Managing Editor

The Glens Falls Industrial Development Agency approved tax credits and a PILOT — Payment in Lieu of Taxes — amounting to an estimated $842,060 for Chris Patten’s 46-56 South Street project.

The PILOT in this case is a “partial real property abatement,” for a term of 10 years, IDA Chair Judy Calogero tells The Chronicle. It includes a 100% exemption of taxes on the value of the improvements on the property for years 1 to 5 of the agreement, and a 50% exemption on the value of the improvements for years 6-10.

“Using the current tax rates and assessed value, we estimate the tax benefit during the term is $668,340,” Ms. Calogero said.
Ms. Calogero said the IDA used financial projections from the applicant to test different PILOT options. “The 10-year PILOT is the version staff recommended. We also looked very closely at a 7-year PILOT, but the cash flow was too negative.”

Mr. Patten came to the IDA after unexpected “challenges,” he told the IDA at the May 15 public hearing.

“We ran into a few issues along the way that led us to look for some additional funding, really, to preserve the building into what is going to be a long-standing, lasting building. That added quite a bit of scope to the project. We’re a little bit behind schedule on things because of the shortfalls that we came up against.”

Ms. Calogero told Mr. Patten, “The fact that you’ve been delayed we’re very comfortable with, because one of the things you’ve asked for is the sales tax exemption on the materials you’re buying, and so…on anything that you’ve held off on purchasing, we’ll be able to assist going forward.”

Exemption from state and local sales taxes on purchases for the project will be an estimated $134,750 benefit based on expected purchases of $1,925,000.

Exemption from the mortgage recording tax will save or an estimated $38,970, based on approximate mortgage amount of $3,897,000.

Estimated total project cost is $5 million.

Mr. Patten told the IDA, “I’ve made choices along the way…so (the building is) going to last forever. The choices that I’m making are about preservation and long-term. The integrity of the building is back to the way it was when it was originally built, in around 1900.”

Parking at former Rite Aid site

Mr. Patten’s separate development at the former Rite Aid pharmacy site at the intersection of South and Broad Streets include 56 parking spaces on the project’s first level — one space per apartment unit for both his projects, plus 12 for the commercial spaces in the buildings.

He said he expects the Rite Aid project to be completed in about the same time frame as the South Street building — though he said that before human remains were discovered on the site.

Mr. Patten has not said publicly whether or how the discovery might slow that second project on Broad Street.

Mayor: DRI effect & a request

Mayor Bill Collins told Mr. Patten, “You’re an example of how the DRI is adding and multiplying,” referencing what he describes as the impact of New York State’s $10 million Downtown Revitalization Initiative grant to Glens Falls.

“Because of the what’s going on there, it certainly made you and other people look harder at that corridor. It’s the ‘multiplier effect,’” Mayor Collins said, quoting state Comptroller Tom DiNapoli when he toured South Street a week earlier.

Mayor Collins also noted the June 7 start of the Glens Falls Farmers Market at the new “Ed” Market Center.

He requested that Mr. Patten move equipment and adjust road barriers for the weekends, as patrons will be expected to park in the Elm Street lot around the corner from the Market Center.

The mayor offered City DPW to help with this effort.

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